If the Rate of Earnings Is 12% and the Cash

question 72

Multiple Choice

If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the present value amount, using the following partial table of present value of $1 at compound interest. ? $$\begin{array} { c c c c } \text { Year } & 6 \% & 10 \% & 12 \% \\\hline 1 & 0.943 & 0.909 & 0.893 \\2 & 0.890 & 0.826 & 0.797 \\3 & 0.840 & 0.751 & 0.712 \\4 & 0.792 & 0.683 & 0.636\end{array}$$

• A) $16,520
• B) $15,940
• C) $14,240
• D) $17,860

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Definitions:

Atomic Sentences

The simplest kind of sentences in logic that cannot be broken down into smaller parts, representing basic facts or assertions.

Truth Values

The attribution of truthfulness to a statement, typically classified as either true or false in classical logic.

Truth Table

A mathematical table used in logic to determine the validity of an argument or to show the truth value of a logical expression based on all possible scenarios.

Atomic Sentences

Simple statements in logic that cannot be broken down further into smaller statements.